In minimum-service states, real estate laws mandate that brokers perform specific statutory duties, such as presenting offers, providing disclosures, which cannot be waived. Because entry-only or limited-service listing models are restricted, brokers must devote more time and administrative effort to every seller regardless of whether the seller wants those services. 

Additionally, these regions typically experience lower listing volumes, meaning fixed operational overhead, like maintaining MLS memberships, licensing, compliance, transaction oversight, and required minimum-service duties. Combined with less automation and smaller broker networks in non-metro areas, the labor cost per listing is naturally higher. This is a broader industry dynamic rather than a practice unique to Houzeo, as traditional and discount brokerages alike must adjust pricing to account for these legal and operational costs.